Turkey Business Confidence

Turkey: Business confidence recovers in September

September 24, 2014

The Real Sector Confidence Index published by the Central Bank rose from 106.8 in August to 107.6 in September. As a result of the monthly increase in the index, business confidence remains well above the 100-point threshold, which indicates an optimistic outlook for business conditions.

September’s result showed that businesses were more optimistic regarding export orders, total employment and the expected volume of output for the coming three months. Conversely, firms were significantly more pessimistic regarding the past amount of orders and the general business conditions, with both sub-indicators reaching a six-month low in September.

FocusEconomics Consensus Forecast panelists see fixed investment expanding 0.7% in 2014, which is unchanged from last month’s estimate. In 2015, panelists expect investment growth to accelerate to 3.6%.

The current account balance recorded a USD 4.2 billion deficit in November, above market expectations of USD 4.0 billion, and a sizeable increase from the USD 2.2 billion shortfall recorded in November 2016.